BCM Additional Labor Costs Due to Covid

PANDEMICS AND PRODUCTIVITY: QUANTIFYING THE IMPACT

Summary Findings Our study indicates an overall 9.2% average productivity impact on Sheet Metal, HVAC and Mechanical contractor productivity as a result of the pandemic . In the larger samples we received in the Midwest regional projects, we are seeing the productivity loss approaching 11% on average. These productivity losses are additive to the mitigation impact of 8.7% (and confirmed by the New Horizons Foundation study data combined with ELECTRI at 8.8%), to produce a total productivity impact of 17.9% . These may occur due to non-mitigation related impacts including, but not limited to: extra mobilizations/demobilizations, work fatigue from anxiety and excess absenteeism, social distancing effects, off-shift work, altered delivery & material receiving, inspection and cleaning requirements, etc. Based on the current data, there are over 85 minutes of lost productivity per day per employee’s 8-hour work period. Roadmap Companies that have trended lower in productivity losses have established, organized and trained their teams with new pandemic mitigation processes and procedures. Additionally, they have monitored and shifted work activities to accommodate required distance working between team members. Contractors are using plotting pre-hangars (Trimble/HILTI) and the pre-fabrication dynamic to lessen the impact of these productivity tasks, Contractors taking advantage of and maximizing prefabrication disciplines to minimize field crews to increase efficiency.

The baseline impact of 9.2% is substantial. Contractors should utilize this information to price an equitable adjustment properly utilizing this study’s associated Pandemic Change Order Calculator provided and this study as backup for the impact. Additionally, contractors should utilize this study as support documentation when requesting price adjustments. The Pandemic Change Order Calculator can be found here: www.newhorizonsfoundation.org/ pandemiccocalculator/

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